Credit cards are a good alternative in times of emergency and other times as well. The purpose of having a credit card are numerous contrary to the belief of people. People see that having a credit card is dangerous or careless if they are used to making cash payments for everything. But, the fact is, it is recommended by credit experts that the least number of credit cards that one should have is one. There are many advantages of possessing a credit card. The convenience brought about by credit cards makes it possible for one to use them at retailers worldwide. In today’s generation of online shopping, using a credit card the safest means of payment. Below is the importance of owning a credit card.
In case of catastrophe. One of the reasons for having a credit card is if you are faced with a catastrophe. From time to time, there are instances where money becomes a challenge. That’s why a credit card is beneficial. In case your car breaks down, there will be no need for you to rearrange your budget to accommodate these expenses.
It assists people to establish better credit practices. When you have no credit it is as bad as when you have bad credit. Using your credit card frequently when making payments communicate a message to lenders that you are responsible with your money. This will make you develop the habit of doing monthly payments for the bigger items you buy in your life for example cars and house.
It strengthens your credit score. You can boost your credit score when you pay up your debts without delay. Especially with a marginal fair to good credit score, if you want to improve your score; open a credit card. You can use it to pay for your expenses and clear it off at the end of every month and your credit score will grow within a short time frame.
Tracking how you spend your money becomes easy. You can easily track your spending with the use of a credit card. A lot of credit cards provide built-in expenses reports to your monthly statement for you to see areas that you are spending your money. When you use your credit card for frequent purchases and pay it off end month, you are not going to accrue interest allowing you to budget better.
To ensure that you are safe from fraud. The main purpose of having a credit card is to ensure that you do not become a victim of fraud. For instance, if a criminal gets hold of your credit card, they will be unable to access your bank account. Also, if you promptly inform your credit card company, they will stop any transactions from your account and begin to probe it. Luckily, with most credit card companies having zero fraud liability policy, you are not going to lose your money.